BUT WHAT OF ITS LEGACY? Enter stage right: Blockchain. Perhaps lost in the pantomime of last year’s speculative frenzy is the technological beating heart, the immutable ledger, pumping louder than ever before. While one could debate the need or reason for cryptocurrencies very existence (of which Bitcoin is one of some 1500), the debate on Blockchain, or ‘Distributed Ledger Technology’ is over before it has reached the Lectern. It is the future.
In short, a distributed ledger (of which Blockchain is an example) is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions. There is no central administrator or centralized data storage. This shared ledger is updated and maintained by a network of computers. It is protected and secured by cryptography.
Dear readers, we are entering a technological revolution as important as the internet. We are waking up to a new dawn where DLT will commodities supply chains to charities and anything in between. Any industry you can think of in fact could well be radically changed. Pick any one. If the industry you are now thinking of involves data or transactions, commented on its potential to be the Internet of Finance. Where bitcoin was the solution looking for a problem, Blockchain is the solution to myriad of problems.
Figure 4: Size of the blockchain technology market worldwide from 2016 to 2021 (in million U.S. dollars)
Let us focus our thoughts on commodities and are working on a Blockchain based system to track the bean to cup, connecting the farmer to the consumer. Increasing transparency, traceability and accountability paperwork, letters of credit and legal paperwork. The The Canadian Securities Exchange is releasing the settlement. The list of innovations and investment in the area runs to many pages. Statista forecast that, by 2021, Blockchain technology will be some $2.3bn market.
coin can change the industry, but that Blockchain will. In clearing alone, an industry worth some $27bn, settlement cycle. 2 DAYS! As the CSE note Blockchain has the ability to quicken that to something close to instantaneous. Taking the logical steps one stage further, how about a Blockchain based KYC/AML. detect and prevent untoward activity and improve trust.
Further again, why the need for futures exchanges at all? Clearing Houses? Brokers? Possibly a little hasty but a dystopian world where traders are replaced by hedging strategies of the giants, doesn’t seem beyond the realms of possibility.
Many of the challenges faced in making our industry stroke by employing Blockchain/DLT technology. The way. The answer is the same for all industries. The new kid on the block for 2018 is the Blockchain itself, and it would appear that many are speculating it is here to stay.
Charles Branch E:
charles.branch@
admisi.com T: +44(0) 20 7716 8598
18 | ADMISI - The Ghost In The Machine | March/April 2018
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